IH · iHuman Inc.

Revenue for FY 2025 totaled $807.0 million, down 12.5% from $922.2 million in FY 2024. This decline was primarily driven by reduced active users, attributable to the ongoing decrease in China's newborn population, which directly impacts demand for iHuman Inc.'s educational products targeted at young children. Despite these demographic headwinds, the company maintained robust gross profit of $547.6 million, representing a 67.9% gross margin. The year-over-year contraction in gross profit by 14.5% from $640.2 million stemmed mainly from diversification and structural upgrades in the product portfolio, as management executed a strategy to broaden offerings for domestic and overseas families.

Net income was $95.4 million, down 3.2% from $98.6 million, with diluted EPS stable at $0.36, consistent with the prior year. Net cash provided by operating activities amounted to $51.3 million, down from $58.5 million but sufficient to fund operations and maintain liquidity. This cash generation supports the company's strategy without reliance on external funding, though management noted potential future needs to enhance liquidity for investments.

Looking forward, iHuman Inc. plans to continue introducing new products to further diversify monetization channels and solidify its competitive position globally. This diversification push addresses domestic demographic declines while expanding internationally, with expectations that most future revenues will remain denominated in Renminbi. Expense discipline and product innovation position the company to navigate headwinds effectively.